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There are two basic ways to help make your money last in retirement, one is where you spend less than you earn in retirement, and the other is using a portion of your retirement savings into investments which keep growing for you. Tip#l In retirement, you need to set up a budget just like you had in your working days. Make a list of expenses you expect in retirement, you might want to consider looking at the monthly expenses in your checkbook, and determining which ones might change once you are in retirement. For example, you will not be driving back and forth each day to Portland, Maine so you will be saving on about $l5-20 a day on gasoline, you also will not be entertaining your customers at shows and fancy restaurants, now you can save $l50 a week, and perhaps you don't really need two cars any longer, and you could save $2,500.00 car payments, and $50.00 a week for car maintenance. See how you can cut down some expenses, and others can go up, such as medical insurance, and prescriptions and medical care, can increase once you retire Review all expenses and determine which ones can be cut, removed completely, in your retirement. Let's say that your total income from your 40lk and your Social Security payment amounts to $5,000.00 and your total expenses, once you review them fully, are $4,000.00, this means you have a surplus of $l,000.00 to last you until you get next month's income. Tip#2 Let's say you have $300,000.00 in your bank collecting 5% in CDs(Certificate of Deposit) at your bank, and are receiving only $l5,000.00 yearly from it. Why not consider taking a portion of it to invest in a mutual fund, with a good track record of getting a good return. Use only $20,000.00 at a time, and try a mutual fund which you feel could bring in l0-12% yearly. If it works, you might consider, putting more money to increase your income. The key to avoid running out of your money, is to cut living costs to the bone, and keep seeking gains in your money, to stay even or ahead of inflation. Try not to withdraw money from your income-only during emergencies. The key is that you must keep investing in your retirement and make your money work harder, and harder, for you and your retirement.

Learn more about this author, William Bond.
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